Sorry Sugar, a Gurugram-based coffee brand launched in 2026, has closed a $1 million seed round co-led by the Dhanuka family and Amishi London, the company said. The announcement follows a strong first month in which the brand says it crossed Rs 1 crore in revenue and expanded to three stores across Delhi and Gurugram.

The company sells coffee-based drinks sweetened with monk fruit instead of added sugar. It says it will use the sales and the new capital to build a larger footprint across North India, and to add products beyond coffee.

The Funding and Its Investors

Sorry Sugar announced the seed round in September 2026. The Dhanuka family and Amishi London co-led the round, which the company valued at $1 million. The money will support expansion across North India and the development of new products, the company said. It did not disclose its valuation or the size of individual cheques.

The raise places Sorry Sugar among a group of Indian beverage and food startups that have attracted early capital with a clean-label promise, as a growing number of buyers look to cut added sugar from everyday drinks.

What Sorry Sugar Sells

Sorry Sugar operates in the flavoured coffee segment. Its products are positioned as zero-added-sugar, prebiotic and fibre-rich. The brand uses monk fruit, a natural sweetener that carries almost no calories, alongside prebiotic fibre.

Its coffee range includes Hazel Almond Latte, Silk Chocolate Mocha, Sea Salt Caramel, French Vanilla Cloud and Butter Gooey Toffee. Besides ready drinks, the company sells premixes so that customers can prepare its beverages at home.

Read more: Lorazzo, another direct-to-consumer brand, recently raised Rs 15 crore in a funding round led by Sauce to scale its smart home fittings business and expand its offline reach.

Use of Funds and Expansion Plans

The company is targeting more than 100 outlets by 2027, up from three today, and Rs 60 crore-plus in annual recurring revenue this financial year. That implies opening roughly one store a week over the next year and a half while keeping quality consistent across cities.

Sorry Sugar runs three sales channels at once: its own direct-to-consumer website, quick commerce platforms and physical stores. It also plans to move beyond coffee, including a range of zero-added-sugar gelatos sweetened with monk fruit.

Financials and the First-Month Number

Crossing Rs 1 crore in the first month is unusual for a food and beverage business. Most brands spend their early months on supply chains, packaging and store economics before revenue becomes meaningful. The early figures suggest the quick commerce and direct-to-consumer mix is doing more work than the physical stores at this stage.

The harder test is store-level economics. Investors are likely to judge Sorry Sugar on whether each outlet turns profitable as the network grows, rather than on the first month headline number.

Founders and a New CEO

Sorry Sugar was launched by Deepak Pathak, Kunal Verma, Shashank Sehrawat and Saiyam Malik, according to its September funding announcement. In October 2026, the company appointed Palash Arneja as Founder and CEO. Arneja had earlier helped incubate the brand with Wolfpack Labs and will lead product development, distribution and business growth.

Before Sorry Sugar, Arneja founded the fragrance brand BLA BLI BLU, which the company said grew into a Rs 1,000 crore brand in under a year. He also co-founded Unikon.ai and previously worked at Deloitte and HSBC.

Arneja said consumers should not have to choose between health and taste, framing the brand around a simple consumer problem: people who drink coffee daily but want to cut added sugar without settling for a drink that tastes like a compromise.

What Happens Next

The next test is execution. Opening more than 100 stores in about 18 months is an aggressive target for a young brand, and food businesses often struggle to keep quality consistent as they scale. How quickly Sorry Sugar repeats its early sales momentum across new cities and channels will decide how soon it can raise again.

For now, the brand has both a revenue milestone and a seed round to build on, and a new chief executive to steer the rollout.